In this section, we describe the vigilance and legal measures that can be taken in accordance with the Electricity Act, 2003. The Electricity Act, 2003 is being implemented now in respect of power theft and other irregularities. Theft or pilferage of energy is a conscious and dishonest consumption of unmetered energy. Electricity Act, 2003 has brought radical changes in all the facets of
the electricity sector. We consider its impact on power theft and assessment and briefly describe the relevant sections here.
• Sec.55: This section contemplates compulsory metering of all the services within 2 years. Concerned Electricity Regulatory Commission is to initiate action on the defaulting company and person. It can extend this period if necessary.
• Sec.126: This pertains to the unauthorised use of electricity, which means the usage of electricity for the purpose other than that for which the usage of electricity was sanctioned, viz.:
− domestic connection used for non-domestic or industrial purpose;
− non-domestic connection used for industrial purpose;
− agricultural connection used for domestic, non-domestic, industrial and farm house purposes.
Earlier, the litigation could be prolonged endlessly. Further, there were innumerable stages for appeal by the accused. Now, they are reduced to just two.
− Inspecting officer is himself/herself the provisional assessing officer and acts as the final assessing officer too.
− This section is non-criminal in nature.
− Assessment is at one and a half times the normal rate.
− The assessment is to be made for 3 months for domestic and agricultural services and 6 months for other services.
− The consumer could always say that she/he did not receive any notice from the utility. Now the Act says that it could be served on any person available.
• Sec.127: There is only one appeal. It is to be made within 30 days after making one-third payment. Earlier, there was protracted litigation without any payment or with nominal payment. After such long periods, interest too was not levied. This section specifies 16% half yearly compounded interest after 30 days of order of assessment and not from the date of serving of the notice. Further, the decision is final.
• Sec.135: Criminal prosecution is to be launched on the person who dishonestly taps energy, tampers or damages meters, etc.
− 3 years imprisonment or fine or both can be levied. For the first offence, the fine is at 3 times the loss sustained by the utility. For the second offence, it is at 6 times and if the connected load is more than 10 kW, imprisonment is from 6 months to 5 years.
− The burden of proof rests on the consumer.
− The inspecting officer can break open, seize and remove records.
− However, the presence of one adult male member of the family is necessary from 6 p. m. to 6 a. m.• Sec.138: Restoration during disconnection period, even if it is through the meter, is a criminal act entailing 3 years imprisonment or fine of Rs.10,000 or both.
• Sec.145: No civil court has jurisdiction.
• Sec.150: The ruffians, including any utility official, can be prosecuted for abetment of these offences even if it is against the provisions of Indian Penal Code. The black sheep in the utility employees can be prosecuted as abettors whenever they even just acquiesce.
• Sec.151: The complaint can be lodged, inter alia, only by the employees of the utility.
• Sec.152: Compounding of the case is permitted at the specified rates.
• Sec.153: It reads as follows:
“Section 153: Constitution of Special Courts
1) The State Government may, for the purposes of providing speedy trial of offences referred to in sections 135 to 139, by
notification in the Official Gazette, constitute as many Special Courts as may be necessary for such area or areas, as may be specified in the notification.
2) A Special Court shall consist of a single Judge who shall be appointed by the State Government with the concurrence of the
High Court.
3) A person shall not be qualified for appointment as a Judge of a Special Court unless he was, immediately before such
appointment, an Additional District and Sessions Judge.
4) Where the office of the Judge of a Special Court is vacant, or such Judge is absent from the ordinary place of sitting of such
Special Court, or he is incapacitated by illness or otherwise for the performance of his duties, any urgent business in the Special
Court shall be disposed of –
a) by a Judge, if any, exercising jurisdiction in the Special Court;
b) where there is no such other Judge available, in accordance with the direction of District and Sessions Judge having jurisdiction over the ordinary place of sitting of Special Court,as notified under sub-section(1).”Thus, a Special Court shall be constituted for these cases with a judge of the cadre of Additional District and Sessions Judge.
• Sec.154: Offences punishable under sections 135 to 139 are triable only by Special Court. Summary trial with punishment up to 5 years. Special Court can also tender pardon under certain conditions. Civil liability in such cases is not less than 2 times the assessment for 12 months.
• Sec.156: Appeal to High Court.
• Sec.157: Review by Special Court.
• Sec.168: Protection for bonafide actions of assessing officer, public servant, etc.
• Sec.169: Assessing officers along with others are public servants.
• Sec.170: Penalty considered as land revenue.
• Sec.171: Notice can be served on the person available, or posted at a
prominent place.
It is the responsibility of the States and Distribution Utilities to ensure effective implementation of these provisions and curb revenue loss due to power theft.
the electricity sector. We consider its impact on power theft and assessment and briefly describe the relevant sections here.
• Sec.55: This section contemplates compulsory metering of all the services within 2 years. Concerned Electricity Regulatory Commission is to initiate action on the defaulting company and person. It can extend this period if necessary.
• Sec.126: This pertains to the unauthorised use of electricity, which means the usage of electricity for the purpose other than that for which the usage of electricity was sanctioned, viz.:
− domestic connection used for non-domestic or industrial purpose;
− non-domestic connection used for industrial purpose;
− agricultural connection used for domestic, non-domestic, industrial and farm house purposes.
Earlier, the litigation could be prolonged endlessly. Further, there were innumerable stages for appeal by the accused. Now, they are reduced to just two.
− Inspecting officer is himself/herself the provisional assessing officer and acts as the final assessing officer too.
− This section is non-criminal in nature.
− Assessment is at one and a half times the normal rate.
− The assessment is to be made for 3 months for domestic and agricultural services and 6 months for other services.
− The consumer could always say that she/he did not receive any notice from the utility. Now the Act says that it could be served on any person available.
• Sec.127: There is only one appeal. It is to be made within 30 days after making one-third payment. Earlier, there was protracted litigation without any payment or with nominal payment. After such long periods, interest too was not levied. This section specifies 16% half yearly compounded interest after 30 days of order of assessment and not from the date of serving of the notice. Further, the decision is final.
• Sec.135: Criminal prosecution is to be launched on the person who dishonestly taps energy, tampers or damages meters, etc.
− 3 years imprisonment or fine or both can be levied. For the first offence, the fine is at 3 times the loss sustained by the utility. For the second offence, it is at 6 times and if the connected load is more than 10 kW, imprisonment is from 6 months to 5 years.
− The burden of proof rests on the consumer.
− The inspecting officer can break open, seize and remove records.
− However, the presence of one adult male member of the family is necessary from 6 p. m. to 6 a. m.• Sec.138: Restoration during disconnection period, even if it is through the meter, is a criminal act entailing 3 years imprisonment or fine of Rs.10,000 or both.
• Sec.145: No civil court has jurisdiction.
• Sec.150: The ruffians, including any utility official, can be prosecuted for abetment of these offences even if it is against the provisions of Indian Penal Code. The black sheep in the utility employees can be prosecuted as abettors whenever they even just acquiesce.
• Sec.151: The complaint can be lodged, inter alia, only by the employees of the utility.
• Sec.152: Compounding of the case is permitted at the specified rates.
• Sec.153: It reads as follows:
“Section 153: Constitution of Special Courts
1) The State Government may, for the purposes of providing speedy trial of offences referred to in sections 135 to 139, by
notification in the Official Gazette, constitute as many Special Courts as may be necessary for such area or areas, as may be specified in the notification.
2) A Special Court shall consist of a single Judge who shall be appointed by the State Government with the concurrence of the
High Court.
3) A person shall not be qualified for appointment as a Judge of a Special Court unless he was, immediately before such
appointment, an Additional District and Sessions Judge.
4) Where the office of the Judge of a Special Court is vacant, or such Judge is absent from the ordinary place of sitting of such
Special Court, or he is incapacitated by illness or otherwise for the performance of his duties, any urgent business in the Special
Court shall be disposed of –
a) by a Judge, if any, exercising jurisdiction in the Special Court;
b) where there is no such other Judge available, in accordance with the direction of District and Sessions Judge having jurisdiction over the ordinary place of sitting of Special Court,as notified under sub-section(1).”Thus, a Special Court shall be constituted for these cases with a judge of the cadre of Additional District and Sessions Judge.
• Sec.154: Offences punishable under sections 135 to 139 are triable only by Special Court. Summary trial with punishment up to 5 years. Special Court can also tender pardon under certain conditions. Civil liability in such cases is not less than 2 times the assessment for 12 months.
• Sec.156: Appeal to High Court.
• Sec.157: Review by Special Court.
• Sec.168: Protection for bonafide actions of assessing officer, public servant, etc.
• Sec.169: Assessing officers along with others are public servants.
• Sec.170: Penalty considered as land revenue.
• Sec.171: Notice can be served on the person available, or posted at a
prominent place.
It is the responsibility of the States and Distribution Utilities to ensure effective implementation of these provisions and curb revenue loss due to power theft.
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